The American Institute of CPAs (AICPA) says that it welcomes the efforts of lawmakers in the U.S. House of Representatives to reduce taxes, but urges simplification, as well.
“We want to acknowledge the efforts of Chairman Brady and others in developing the tax reform package,” said AICPA President and CEO Barry C. Melancon, CPA, CGMA. “We look forward to continuing to work with lawmakers as they consider tax reform that meets the needs of taxpayers, tax practitioners and others.”
The proliferation of new income tax provisions since the 1986 tax reform effort has led to compliance hurdles for taxpayers, administrative complexity for CPAs and enforcement challenges for the Internal Revenue Service, Edward S. Karl, AICPA vice president for taxation, explained. “We encourage the 115th Congress to examine all aspects of the tax code to improve the current rules. We stand for a code that is simple, practical and administrable,” Karl said.
The AICPA has consistently supported tax reform simplification efforts because the AICPA is convinced such actions will significantly reduce taxpayers’ compliance costs and encourage voluntary compliance through an understanding of the rules, according to Karl.
“We will share our thoughts about particular provisions of the legislation after careful review, using our guiding principles of good tax policy as a benchmark,” Karl said. “And, as the debate continues, we reaffirm our commitment to provide the non-partisan expertise that the American people and policy makers have come to expect of the CPA profession.”
Professional services firms, including accounting firms, are an important sector in the U.S. economy. We encourage the committee to consider the contribution service firms make to the nation’s economic growth as it continues its work on tax reform.